National executive to get lion’s share of next budget

 The Cabinet yesterday, 22^nd April, 2015 met under the Chairmanship of President Uhuru Kenyatta where the FY 2015/16 Budget Estimates and Financing Proposals were discussed and approved .

Under the new budget, there is an overall increase of 24.9% in funding to all sectors compared to the budget for FY 2014/15, with Energy, Infrastructure and ICT Sectors overtaking Education Sector accounting for 27.3% of total Sectoral funding in 2015/16 compared with 21.7% in 2014. 

The Cabinet noted and appreciated that the FY 2015/16 budget continues to focus on Vision 2030 and the Jubilee Government priorities under a five pillar transformation agenda that targets:

•  Creation of a conducive business environment

• Investing in agricultural transformation and food security

•  Investing in first-class transport and logistics

•  Investing in quality and accessible healthcare and education services as well as strengthening the social safety net to reduce the burden on the households.

•  Supporting devolution for better service delivery and enhanced economic development.

•   Reviving the Tourism Industry.

The budget has further made provision for funding to critical programmes aimed at Strategic Interventions in various areas.  The interventions specifically target modernization of the Military and the Police to give them adequate capabilities to deal and vanquish the security threats arising from Terrorism. 

 Other interventions include:

 ·         Leasing of medical equipment

·         Road annuity programme

·         NYS Reengineering and Youth Empowerment

·         Construction of Sports Stadia

·         Land titling

·         Energy

·         Slum upgrading/health programme

 Forecasts

The economy is expected to grow at 6.9 % initially, picking up to 7.0% over the medium term.

 Inflation –   This will be maintained within Government target of 5% over the medium term.

 Revenue –   Expected to improve due to ongoing tax Reforms to reach 20.7% in FY 2015/16.

 Summary of FY 2015/16 Budgetary Allocations